National Republican., 1887-05-27
National Banks-silver Depositories.

The reports of the financial dep lrtm ent
OF the government show the entire amount
of money OF all kinds IN existence in the
country and where the money Is located,
whether in active use or locked up so that
II is not in circulation.
A careful analysis OF these vario is re-
ports has to be made 70 discover the actual
amounts In circulation and the actual
amounts held by the government, for the
reports are so intricate that 1t requires close
study to arrive at correct conclusions.
The limits Of newspaper article will
not permit the introduction Of the pro-
cesses by which the facts are attainable
and arrived at, but merely q statement OF
the results.
The results In this case are that at the
close of the fiscal year now drawing near
there will be less than s9000O0,000 Of all
classes Of currency In the hands of the
banks and the people, which, with 60,000,-
COO people, gives an apparent per capita
circulation Of less than $15.
OF this 5000, ,O00, 900 at least S300,00 900,
one-third Of the whole, is in the vaults Of
the national banks as their own property,
" uc useu UT uOJ uJ tuciT hioCioeiobt eht
this sum does not include the legal reserves
required by the national banking law,
which sums can in no sense be considered
as part Of the circulating medium Of the
country.
So that the actual money In the hands OF
the mercantile community and the people,
outside of what the banks own, is reduced
g., gpnD O0n Q0D or C1O NOR panita
1t is a notorious fact that the business
men Of the country are largely indebted to
the banks, the Indebtedness on the 1st OF
November last being nearly double the
amount of the entire money Of the country,
that is, in round numbers, 81 ,443, 900, 900.
OF course the "loans and discounts" Of the
banks to their customers, the merchants,
represent similar or larger amount due
from the people to the merchants.
1t is evident from these figures that H.,
from any cause, the banks were to call in
even 25 per cent. Of their loans and dis
counts, that money would become fearfully
scarce Just at the time that large amount
is needed for the purpose of gathering aud
moving the principal crops OF the country
that is, cotton, wheat, corn, and meat.
The treasury of the United States is the
richest, strongest, greatest banking institu-
ton, not only in the United States, but in
the world, and its action affects all the
smaller institutions of the same kind In n
ratio fully as great as that OF geometrical
progression.
The government is contracting the cur
rency at fearful rate. Over 100000
each month of the circulating medium is
being drawn into the vaults of It's treasury
there to remain unutilized.
The inexorable laws Of finance compe
the banks of the country to follow the ex-
ample of the treasury and contract theii
'loaps and discounts'-that is, reduce the
amounts due them, thus still further lessen.
ing the volume Of money, already toosmall
In circulation.
Great Britain with its 36,000,000 popula-
tiou, in an area less than one-thirtieth that
Of the United States, has twenty-four dol
lars per capita circulation, and France, with
one-ffteenth of our territory, has forty-thret
dollars per capita circulation, while the
United States has now less than ten dollars
and that amount being rapidly reduced.
"Wbat does this portend ?" sis there {
remedy 2' are two questions which the peo
pie must ask, and to the latter favorable
answer must be found.
The first question does not require any
answer. 1t answers itself by being stated
The second is the one with which we pro
pose to deal, and to endeavor to show the
remedy for the threatened evil.
The only remedy for the condition W.
have shown to exist is the application o.
common-sense business principles to the
affairs Of the nation.
When the flow Of blood from the human
heart through the arteries becomes dul
and sluggish, stimulation is resorted tt
until the trouble is corrected. So, as th,
national banks are the arteries through
which money flows from the treasury-tht
financial heart OF the nation-to the people
and that flow has become sluggish, 1t mus
be stimulated.
The question is, How shall that be done
At the close OF the last fiscal year tht
treasury held, In round numbers, to seenre
circulation of the national banks, S2'6,0o),
GOO OF the bonds OF the United States, dl
vided as follows: